So far, the debate over a state oil-tax cut hasn't gone the way Alaska's three major oil producers wanted, so one of them has announced it's scaling back pioneering-but-costly North Slope exploration. That's the takeaway from a Journal of Commerce article that says BP has announced plans to reduce investment in technically challenging efforts in Alaska's Arctic oil and gas fields, including shutting down an experimental heavy-oil production project on the North Slope.

BP Alaska President John Minge blamed the Alaska Legislature's unwillingness to reduce its oil-production taxes to encourage long-term development, according to the article.

No the unsaid issue is Aleyska Pipeline is now 35 years old. The probable oil available on the North Slope doesn't justify the cost of replacement unless you assume $150/barrel for oil. Does absolutely no good to do a bunch of exploration if you can't afford to get it to market.

Gas Businesses if they do choose to - must weigh the costs of getting the Gas vs what they can sell it for. If it costs to much to make and prices do not cover their actual costs with a profit - we do not do it.